📊 LTH Key Takeaways
Is Life Time Group Holdings, Inc. (LTH) a Good Investment?
Life Time exhibits strong top-line growth (14.3% YoY revenue) and exceptional reported profitability gains (139.2% net income growth), but faces critical financial health concerns that outweigh near-term performance. Negative free cash flow of -$61.2M combined with severely depressed liquidity ratios (0.53x current, 0.42x quick) indicate structural cash generation problems and potential distress, while ROE of 2.7% and ROA of 1.1% reveal poor asset and equity utilization.
Revenue and earnings are growing strongly with double‑digit operating and net margins, supporting a solid 12% ROE and healthy operating cash generation. However, liquidity is tight and free cash flow is negative due to heavy capex, which raises execution and refinancing risks until growth translates into sustainable positive FCF. Maintain a neutral stance pending clearer improvement in liquidity and cash conversion.
Life Time Group Holdings, Inc. Key Strengths (LTH)
- Strong revenue growth of 14.3% YoY demonstrates solid membership demand and market share gains
- Exceptional net income growth of 139.2% YoY with operating margin of 17.1% shows operational leverage
- Positive operating cash flow of $198.8M from core business activities
- Manageable debt-to-equity ratio of 0.47x provides reasonable leverage cushion
- Strong YoY revenue growth with margin expansion
- Robust operating cash flow generation
- Moderate leverage with growing equity base
LTH Stock Risks: Life Time Group Holdings, Inc. Investment Risks
- Negative free cash flow of -$61.2M indicates company is burning cash despite reported profitability, suggesting unsustainable operations
- Critically low current ratio of 0.53x and quick ratio of 0.42x signal severe liquidity stress and working capital crisis
- Extremely low return on equity (2.7%) and return on assets (1.1%) demonstrate inefficient capital deployment and poor profitability quality
- Capital expenditures of $260M exceed operating cash flow, indicating heavy capex burden with questionable payoff given weak returns
- Weak liquidity (current and quick ratios below 1)
- Negative free cash flow driven by high capex
- Interest/refinancing risk with interest coverage unclear
Key Metrics to Watch
- Free cash flow trajectory and sustainability relative to capital expenditure plans
- Current and quick ratio improvement versus further deterioration of liquidity position
- Operating leverage and return on equity trends to confirm if profitability gains are durable
- Deferred revenue and working capital composition to understand if membership model explains low current ratio
- Free cash flow margin
- Current ratio
Life Time Group Holdings, Inc. (LTH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LTH Profit Margin, ROE & Profitability Analysis
LTH vs Automotive Sector: How Life Time Group Holdings, Inc. Compares
How Life Time Group Holdings, Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Life Time Group Holdings, Inc. Stock Overvalued? LTH Valuation Analysis 2026
Based on fundamental analysis, Life Time Group Holdings, Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Life Time Group Holdings, Inc. Balance Sheet: LTH Debt, Cash & Liquidity
LTH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Life Time Group Holdings, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 reflects profitable operations.
LTH Revenue Growth, EPS Growth & YoY Performance
LTH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $706.0M | $76.1M | $0.34 |
| Q3 2025 | $693.2M | $41.4M | $0.19 |
| Q2 2025 | $667.8M | $52.8M | $0.26 |
| Q1 2025 | $596.7M | $24.9M | $0.12 |
| Q3 2024 | $585.2M | $7.9M | $0.04 |
| Q2 2024 | $561.7M | $17.0M | $0.08 |
| Q1 2024 | $510.9M | $24.9M | $0.12 |
| Q3 2023 | $496.4M | $7.9M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Life Time Group Holdings, Inc. Dividends, Buybacks & Capital Allocation
LTH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Life Time Group Holdings, Inc. (CIK: 0001869198)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LTH
What is the AI rating for LTH?
Life Time Group Holdings, Inc. (LTH) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LTH's key strengths?
Claude: Strong revenue growth of 14.3% YoY demonstrates solid membership demand and market share gains. Exceptional net income growth of 139.2% YoY with operating margin of 17.1% shows operational leverage. ChatGPT: Strong YoY revenue growth with margin expansion. Robust operating cash flow generation.
What are the risks of investing in LTH?
Claude: Negative free cash flow of -$61.2M indicates company is burning cash despite reported profitability, suggesting unsustainable operations. Critically low current ratio of 0.53x and quick ratio of 0.42x signal severe liquidity stress and working capital crisis. ChatGPT: Weak liquidity (current and quick ratios below 1). Negative free cash flow driven by high capex.
What is LTH's revenue and growth?
Life Time Group Holdings, Inc. reported revenue of $788.7M.
Does LTH pay dividends?
Life Time Group Holdings, Inc. does not currently pay dividends.
Where can I find LTH SEC filings?
Official SEC filings for Life Time Group Holdings, Inc. (CIK: 0001869198) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LTH's EPS?
Life Time Group Holdings, Inc. has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LTH's fundamental grade?
Based on our AI fundamental analysis in May 2026, Life Time Group Holdings, Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LTH stock overvalued or undervalued?
Valuation metrics for LTH: ROE of 2.7% (sector avg: 12%), net margin of 11.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is LTH's AI grade for 2026?
Our dual AI analysis gives Life Time Group Holdings, Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LTH's free cash flow?
Life Time Group Holdings, Inc.'s operating cash flow is $198.8M, with capital expenditures of $260.0M. FCF margin is -7.8%.
How does LTH compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 11.2% (avg: 6%), ROE 2.7% (avg: 12%), current ratio 0.53 (avg: 1.2).